Table Of Contents
- 1 What Is A Lis Pendens Real Estate And What Should I Do If I Receive One
- 2 Lis Pendens Real Estate Meaning
- 3 Reasons for filing a Lis Pendens
- 4 Lis pendens real estate
- 5 How to find if my house has a Lis Pendens
- 6 Process of removing a Lis pendens on your property
- 7 Final thoughts
What Is A Lis Pendens Real Estate And What Should I Do If I Receive One
Lis Pendens Real Estate Meaning
Lis Pendens Real Estate meaning usually implies a lawsuit pending. For example, if you want to sell a home that has a Lis pendens, then this formal notice of the pending lawsuit can interfere with your sale of the house.
Experts may further describe the Lis Pendens as a legal written notice that any legal action or team has filed concerning a real estate issue.
The individual having the claim will file it in a county records office to alert the potential buyers of the real estate property of the impending lawsuit.
Reasons for filing a Lis Pendens
A party can file a Lis pendens lawsuit, ranging from undue taxes, succession issues, or unpaid dues to contractors or lending institutions.
The following are some of the reasons for the Notice Of Lis Pendens:
Lis Pendens foreclosure is one of the most reasons why individuals file a Lis pendens. The foreclosure occurs when a lender, either a financial institution or bank, sues a homeowner who may have defaulted to the repayment terms of the mortgage.
After suing the homeowner in court, the lender then files a Lis pendens on the property.
This legal notice delivers a message to the potential buyers, other creditors, or anyone else concerned about the property that the owner may lose the property due to the defaulting payments.
Thus, this foreclosure makes it almost impossible to sanction the sale of the house.
However, the owner can resolve this issue with the banks and clear everything if a buyer is willing to pay more than the house’s current value.
2. Unpaid invoices
If a homeowner has a delinquent account, the Homeowner Association can file a property lien. In addition, a contractor who has not been paid for his work can also file a lawsuit.
However, the homeowner’s money owed to the Home Association, or the contractors may be less than the house’s value.
Thus, the seller may opt for bonding of the Lis pendens and the lien if he needs to sell the house.
3. Battle of ownership
A Lis Pendens may come into play if one or more parties are having disputes over the ownership of a house. The disputes may result from divorce or the inheritance of the property.
Thus, if any of the parties takes the case to court, then the court will place a Lis Pendens on the house to freeze the property. The Lis pendens may prevent any of the parties from putting it on sale.
4. Unpaid taxes on the property
The local government can also file a Lis Pendens on the house or property if the seller has an undue tax on the property that he wants to sell.
Remember, when an agent or a potential buyer wants to buy a house or property, taxes become an essential thing to consider.
When selling the property, the owner should pay all the outstanding taxes on the property.
Lis pendens real estate
In real estate, the Lis Pendens is a signal of a lawsuit that is pending. Anyone having a claim on the property can file the Lis Pendens, for example, the contractors with unpaid due, the taxpayers, multiple ownership due to either divorce or succession issues.
The lawsuit on your property may render it unmarketable if you want to sell, as the potential buyers may see the pending lawsuit. Thus, the Lis pendens make it very hard to sell the house unless you sort the issue with the lawsuit parties.
The lending companies may also use it to get their compensation from the defaulters. In addition, the tenants can use the Lis pendens when the owners evict them out wrongfully in a transaction.
These lawsuits involving the Lis pendens are very complicated; thus, you’ll need a legal expert to help you in case you find yourself in such a scenario.
How to find if my house has a Lis Pendens
Just like any other lien and mortgage, someone may have recorded the title of your house as a Lis Pendens. There are various ways of checking out to find if your house has a Lis Pendens.
The options for checking includes:
1. Search at the recorder’s offices or county clerk; you can conduct a free online or in-person search of the offices of the county clerk and recorder’s offices to determine if your property has a Lis Pendens.
The only thing you’ll need for checking the Lis pendens on your house is the parcel number of the house.
2. Additionally, it’ll also be good to seek the help of a title company. The company will have a title search run on your house to discover if your house has a Lis Pendens.
3. Various real estate agents can provide more guidance on the effective way to find if your house has a Lis Pendens.
Before deciding on selling your house, it’ll be good to check if the house has a Lis Pendens.
The reason is that the legal statement may hinder the sale of the house as either the buyer or the agent can produce the house report with the legal notice.
Process of removing a Lis pendens on your property
When you receive a Lis pendens on your home, you need to seek the guidance of a lawyer or attorney to help you expunge it in a court of law.
To remove the Lis pendens, the property owner will have to show that the person claiming the Lis pendens doesn’t have the validity of claiming it.
After the homeowner provides sufficient evidence on the matter, the party that filed the lawsuit also needs to show the facts on why they feel the lawsuit was right.
The one who wins in this motion will recover all the attorney fees used to bring up the motion.
It’s essential to have the hand of an experienced legal matters real estate agent for your property’s processes either when buying or selling the house.
The services of the experienced agent are important, especially when legal matters such as the Lis Pendens are thrown into the mix; they provide the best legal advice and guidance.
In real estate, the Lis Pendens is an important and serious legal notice. When your house or property has a Lis Pendens, then it renders it unmarketable. Thus, before opting to sell your house, you need to check if the property has a Lis Pendens.
If your house has a Lis pendens, the best option is to contact an experienced attorney to help you set a motion to remove it.
Disclaimer: This article is meant for educational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
References: Notice of Lis Pendens, Definition Of Lis Pendens, Lis Pendens Meaning, Lis pendens real estate, lis pendens foreclosure